How to Take Over a Defaulted Car Payment

If you want to help someone behind on a car loan, pay the past due amount. To take over payments, apply to the lender for the loan amount or pursue your own financing. Unfortunately, you cannot just transfer a loan into another person's name. Every loan approval is based on individual credit information, which affects approval term, rate, down payment requirements and ultimately monthly payment amount. Once approved for the loan, you must pay taxes on the vehicle's price and complete the vehicle transfer at a state motor vehicle office.

Instructions

1

Check over your funds. To take over the loan, you must pay it in full. Use cash or finance the vehicle yourself. Use the same lender to transfer the balance immediately, which can help the original borrower avoid repossession.

2

Ask the owner to call the bank and note his account that you are going to apply for the loan's balance. The seller should give you any information the bank requires and authorize you to discuss the account. Before applying to the lender, have the vehicle's information handy, including its VIN (vehicle identification number), year, make, model and mileage.

3

Apply to the bank either by phone or in person at a branch office. Provide identifying account and vehicle information and apply for the loan's payoff amount. Proceed to give relevant credit application information, such as your date of birth, Social Security number, name, address, employment and address information.

4

Review your loan approval information as soon as you receive notification of approval. This includes term, rate and monthly payment. If you wish to put money down toward the loan, speak to your representative about doing so.

5

Follow any instructions the bank requires, which may include providing your most recent paystub or proof of address. Call your insurance company to add the vehicle to your policy and obtain proof of insurance to bring to the bank --- a requirement of most lenders.

6

Go to the bank to complete your loan contract. Once your loan is complete, the bank immediately pays off the default borrower's loan. Take all applicable paperwork to a local motor vehicle office to complete your title and registration; your lender will offer further instruction.